Development Of Risk Management Research Articles

A quantitative model to assess the human consequences of a natural gas pipeline rupture in urban distribution networks

Natural gas is known as a hazardous fuel that could cause human casualties, especially in urban areas. For this reason, assessing the consequences of natural gas pipeline ruptures is settled as an important element in determining the potential effects of such ruptures on human health and developing risk management programs for natural gas networks. Several efforts have been made in the literature to establish potential consequence areas; however, there are many limitations on the methodologies proposed so far; or alternatively, consequence analyses have been performed in specific cases using a defined location, but not along a natural gas distribution network. The model proposed in this research consists of two main components: (i) a spatial assessment of gas dispersion through the ALOHA software to obtain the potential impact areas, and (ii), the count of the number of individual people located within the potential impact areas through a geographic information system (GIS) model, which proves to be a valuable tool for assessing the consequences of natural gas distribution networks. The proposed model has been applied on a case study to validate the ability to quantify the number of people exposed per linear meter of pipeline, and provide the opportunity to relatively assess the level of consequences of the pipeline network.

Evaluation of Cooperative Risks in Eastern Visayas: Basis for the Development of Risk Management Manual

This study evaluated the risk exposure of cooperatives in Eastern Visayas as basis for the development of a comprehensive risk management manual. The research provided a detailed overview of cooperative profiles, encompassing factors such as membership, asset size, loan portfolio, savings/deposits, equity, and years of operation. The examination extended to the assessment of risk levels across institutional, financial, operational, and external dimensions. Employing a descriptive survey methodology, the study utilized a validated self-made survey schedule as the primary data-gathering instrument for risk assessment. Data analysis involved the application of statistical measures such as arithmetic mean, Pearson correlation, risk severity matrix, and standard deviation. The sample comprised thirty (30) credit and multi-purpose cooperatives, representing 75% of medium and large cooperatives in Leyte, Southern Leyte, Biliran, and Samar provinces. Results indicated an overall low risk level for cooperatives in the institutional, financial, operational, and external dimensions. Particularly, the financial aspect exhibited the highest mean score compared to other risk categories. Factors like the number of members, asset size, loan portfolio, and equity demonstrated significant correlations with identified risks, except for members' savings deposits and years of existence. The study highlighted that the top 5 specific risks carried a combination of high and medium probabilities and impacts. Mitigation strategies, including an internal control system and internal audit, emerged as crucial measures to manage these risks. These strategies were subsequently incorporated into the developed risk management manual, which is recommended for implementation by cooperatives as a proactive measure.

The Coaching Principles Self - Study: Outdoor Sports Events Coach Experiences

This qualitative descriptive study deals with the coaching principles of outdoor sports events as the coaches’ experience. The study was conducted at the Physical Education and Health Sciences of Chongqing Normal University in China. The researcher utilized 10 coaches of outdoor sports including volleyball, tennis, track and field, and football coaches who were chosen using the purposive sampling. The study therefore recommends that: 1) Coaches should prioritize their own development by staying updated with the latest coaching techniques, sports science, and research. 2) Adopting a student-centered approach involves understanding the unique needs and abilities of each individual on the team. 3) Coaches should develop well-structured training plans and set clear, achievable goals for both the team and individual athletes. 4) Coaches should foster a positive and supportive environment where athletes feel encouraged to learn and grow. 5) Coaches must conduct risk assessments and develop risk management plans to ensure the safety and well-being of their team. 6) Building strong team unity and positive relationships among team members can lead to improved cooperation and performance. 7) Recognizing that athletes have different learning styles and needs, coaches should tailor their teaching methods to accommodate individual differences.

Financial market development and corporate risk management: Evidence from Shanghai crude oil futures launched in China

This paper investigates the impact of China's crude oil futures (COF) on risk management at the firm level in China. The empirical results based on a sample from 2014 to 2021 show that the launch of China's COF significantly reduces idiosyncratic risk in energy-dependent firms, and this conclusion remains significant even after a series of robustness tests. Mechanism analysis reveals that the launch of China's COF reduces firms' idiosyncratic risk mainly through the cash flow and volatility within the corporate internal channels and the attention from external market information channels. Further analysis finds that the inhibitory effect is more pronounced among large firms and firms with higher competitive pressures. Our study contributes firm-level evidence on the relationship between China's COF and corporate risk management and provides insights into energy policy.

Forecasting cryptocurrencies volatility using statistical and machine learning methods: A comparative study

Forecasting cryptocurrency volatility can help investors make better-informed investment decisions in order to minimize risks and maximize potential profits. Accurate forecasting of cryptocurrency price fluctuations is crucial for effective portfolio management and contributes to the stability of the financial system by identifying potential threats and developing risk management strategies. The objective of this paper is to provide a comprehensive study of statistical and machine learning methods for predicting daily and weekly volatility of the following four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Monero. Several models and forecasting methods are compared in terms of their forecasting accuracy, i.e., HAR (heterogeneous autoregressive), ARFIMA (autoregressive fractionally integrated moving average), GARCH (generalized autoregressive conditional heteroscedasticity), LASSO (least absolute shrinkage and selection operator), RR (ridge regression), SVR (support vector regression), MLP (multilayer perceptron), FNM (fuzzy neighbourhood model), RF (random forest), and LSTM (long short-term memory). The realized variance calculated from intraday returns is used as the input variable for the models. In order to assess the predictive power of the models considered, the model confidence set (MCS) procedure is applied. Our experimental results demonstrate that there is no single best method for forecasting volatility of each cryptocurrency, and different models may perform better depending on the specific cryptocurrency, choice of the error metric and forecast horizon. For daily forecasts, the method that is always found in a set of best models is linear SVR, while for weekly forecasts, there are two such methods, namely FNM and RR. Furthermore, we show that simple linear models such as HAR and ridge regression, perform not worse than more complex models like LSTM and RF. The research provides a useful reference point for the development of more sophisticated models.

Планування експортної діяльності в умовах виходу на нові ринки

Today, the concept of raising business efficiency to a higher level is a critically important direction of development of the modern Ukrainian economy. Building a sustainable and competitive economy contributes to the creation of healthy competition between various market participants, which has a significant impact on the relationship between producers and consumers. This forces manufacturers to focus their attention on the development and modernization of their products. In the long term, it plays a key role for the country as a whole. Companies all over the world develop a business plan taking into account all possible risks and force majeure circumstances. This has long since become the so-called trend of business transformation in Ukraine to determine and use their full potential. Since there is a war going on in Ukraine now, businesses have to reckon with and struggle with the new realities that it puts before us in order to develop and work to strengthen Ukraine, for the sake of defeating the common enemy. Strong government support and assistance is also critical to successful business development in wartime. The authorities should create favorable conditions for enterprises, including a simplified bureaucratic process, support in export initiatives, as well as ensuring security and stability in the regions of our country. It is important to emphasize that in wartime Ukrainian companies must be ready for a wide variety of challenges and crisis situations. They must actively develop risk management strategies to ensure the sustainability of their business and protect the interests of consumers. In addition, it is important to focus on the development and application of new technologies and innovations that can contribute to increasing the productivity and competitiveness of enterprises and business planning as a whole. This includes the use of Internet resources and various software, artificial intelligence, data analysis and other modern tools to optimize production and business management or create a business plan. That is why business planning is now a very important aspect in such a difficult period, but at the same time it is an opportunity when Ukrainian companies can become international and enter new markets.

Should Companies Take the Risks of Investing in New Product Development: A Case Study of Coca-Cola C2

The enormous changes in the corporate environment over the previous few decades have kept an emphasis on new product development (NPD) alive. Companies currently are exposed to multiple risks in product innovation that lead to low willingness in NPD investment, whereas existing research has neglected how to conduct risk management regarding new product development. Therefore, this paper will examine whether it is desirable for businesses to take the risk of investing in the creation of new goods, focusing on these risks using a case study approach and developing risk management solutions. Analysis of the risks and benefits of product development leads to the conclusion that the company should try to develop new products based on the case analysis of Coca-Cola C2. On the basis of the risks of product innovation, this paper aims to propose some risk management strategies to encourage companies to assess the risks of developing products from all aspects and thereby conduct NPD procedures.

Opportunities and risk management of peat restoration in Indonesia: lessons learned from peat restoration actors

Significant efforts have been invested to restore degraded peatlands in Indonesia considering the high mitigation potential as an effective natural climate solution. However, peat restoration in Indonesia faces challenges such as suboptimal planning and risk management. In this study, we assessed the national potential peat restoration area using spatial analysis and identified the associated risks based on lessons learned from past restoration efforts. We estimated the extent of potential restoration areas by analyzing canal networks, burnt areas, and critical land maps at the national scale. We conducted focus group discussions (FGD), in‐depth interviews, followed by a national workshop with relevant stakeholders to assess the potential risks and develop risk management strategies for peat restoration. Our analysis estimated 6 Mha, or 45% of Indonesia's total peatland area, as potentially restorable areas for rewetting and/or revegetation efforts. Of this potential area, 50% falls under concession holder management. The identified risks consisted of technical (39%), management (38%), social (17%), and economic (6%) factors, with 15 and 22% classified as extreme and high risk, respectively. Policymakers can use these findings to strengthen regulations and improve the chances of successful restoration implementation, supporting Indonesia's emissions reduction target and providing economic benefits for restoration actors.

Navigating cross-cultural port tourism: Unleashing the psychological safety valve for risk management

Existing research primarily concentrates on the influence of epidemic risk on industrial and economic growth, with less attention paid to understanding the internal psychological processes governing tourist risk prevention and management. In light of the imperative for risk mitigation in the post-epidemic era and the revival of travelers' desire to explore, our study introduces a practical mechanism aimed at alleviating psychological concerns and undertakes two thematic investigations. Through structural equation modeling (SEM) analysis, we elucidate the specific mechanisms for opening tourists' psychological safety valves and delve into the factors contributing to tourists' empathy. Furthermore, we delve into the empathetic path for port risk prevention and management, employing four rounds of expert-driven fuzzy evaluation. Consequently, we put forward an empathetic approach to port risk prevention and management for cross-cultural tourism development. This approach unravels the enigmatic ‘black box’ of port management in the post-COVID-19 era, spotlighting the pivotal role of empathy within it. Our study introduces a groundbreaking concept, the ‘opening of the psychological safety valve,’ shedding light on its potential to reconcile tourists' risk perceptions with their travel aspirations. This innovation stands to benefit destinations striving for the healthy growth of cross-cultural tourism.

The Impact of Construction Activities Near the Gulf: The Likelihood of Construction Materials Effect, ERA and Sustainable Development

The environmental risks associated with construction activities are being monitored, especially given the global construction boom, in which the United Arab Emirates is a major participant. Construction activities near Gulf water cause variations in the ecosystem, yet whilst the Environmental Protection Agency (EPA) has given much attention to environmental risks resulting from construction material during construction activities to streams and rivers, there has been limited exploration of those risks in the Gulf. This research paper aims to identify the best practices in Environmental Risk Assessment (ERA) in order to contribute towards the achievement of sustainable development. Specifically, the objective is to determine the relationship between the parameters of water quality (turbidity and pH) that affect the ecosystem during construction activities in the hot summer and to frame effective ERA, to pursue this aim, 32 water samples were collected from the Gulf water in two locations; the first adjacent by 12 m to the Gulf and at a 500 m distance from the second, inactive location in Abu Dhabi city, UAE. All these water samples were taken during the peak time of construction activities, and after six hours of no activities, taking into consideration the weather conditions. Samples were tested in the environmental laboratory within 24 hours. The temperature is particularly considered to predict future levels of variation and consider risks that will affect such areas and seasons. The results indicate that a maximum turbidity level of 25.2 NTU (Nephelometric Turbidity Units) was noticed when the temperature was 43°C and pH 5.9 at the active construction. Hence a strong relationship between turbidity, pH, and temperature and their impacts on the water quality of the Gulf during construction activities is revealed. Outcomes are promising in effective risk management for sustainable development of the Gulf ecosystem during construction activities. The study demonstrates the need for a successful risk management framework to focus on the construction material management treatment that can decrease turbidity and adjust pH in the Gulf water near active construction. In addition, managing statistics of the communities residing near the Gulf and re-evaluating environmental risks are crucial.

Ecological risk assessment and management for riverfront development along the Yangtze River in Jiangsu Province, China

The riverfront along large rivers, representing the water–land and human–nature interaction zone, is of great importance for economic and social development and eco-environmental protection. Human activities, such as urbanization and industrialization, together with inadequate urban planning and disorderly development, can result in serious ecological risks to riverfront ecosystems. The focus of this study was the riverfront along the Yangtze River in Jiangsu province, an area experiencing conflicting demands in terms of ecological protection and economic development. We identified the ecological problems and risks at different spatial scales (micro, meso, and macro) and, based on PSR model, construct an ecological risk assessment index system for any further development along the Yangtze River. Ecological hot spots and cluster zones were identified based on Getis-Ord Gi* hot spot analysis and Ward’s hierarchical clustering. The results showed that the ecological risk index at micro scale of the study area presented spatially positive correlation, with hot spots mainly concentrated in municipal districts. The hot spots of ecological risk assessment at the meso-scale are distributed in the estuary around the Yangtze River, and the cold spots are distributed on the Yang-Tai plain. According to the assessment indices of social economy, ecological function, and planning response at the macro scale, the study area could be divided into four clusters. Lastly, a spatial division of ecological risk posed by riverfront development along the Yangtze River in Jiangsu Province was constructed. On the basis of this analysis, we propose suitable risk management and resource protection measures.

THE ROLE OF LEGAL PRACTITIONERS IN MITIGATING CORPORATE RISKS IN NIGERIA: A COMPREHENSIVE REVIEW OF EXISTING LITERATURE ON THE STRATEGIES AND APPROACHES ADOPTED BY LEGAL PRACTITIONERS IN NIGERIA TO MITIGATE CORPORATE RISKS

This comprehensive review aims to elucidate the pivotal role of legal practitioners in mitigating corporate risks within the intricate corporate landscape of Nigeria. The method involved a meticulous examination of existing literature, focusing on the legal frameworks, regulatory compliance, collaborative innovation, sustainability principles, education, and capacity-building initiatives, financial stability, infrastructure development, and proactive risk management strategies. The results revealed that legal practitioners are instrumental in shaping robust and dynamic legal frameworks and fostering a culture of adherence to legal and ethical norms. They play a significant role in fostering collaborative innovation, integrating sustainability into corporate governance practices, advancing education and capacity-building initiatives, and implementing effective risk management strategies. The conclusion underscores the indispensable and multifaceted role of legal practitioners in navigating the complexities of corporate governance and risk mitigation in Nigeria. Recommendations include strengthening legal frameworks, enhancing collaborative innovation, promoting sustainable corporate governance, advancing education and capacity building, fostering financial stability and infrastructure development, and implementing proactive risk management strategies. These recommendations are crucial for fostering a resilient, sustainable, and ethically sound corporate landscape in Nigeria
 Keywords: Legal Practitioners, Corporate Risks, Corporate Governance, Risk Mitigation, Nigeria.

In the midst of the COVID-19 pandemic: Perceived risks, management strategies and emerging opportunities for small and medium agri-food enterprises in a developing country

The Covid-19 pandemic has posed unprecedented challenges to small- and medium-sized agrifood enterprises (SMAEs) in developing countries. However, research investigating what risks Covid-19 posed to these firms, how they responded, and what business opportunities emerged to SMAEs from the pandemic remains scanty. Drawing on a sample of 166 specialist SMAEs in Egypt, this study addressed these entwined questions by using multiple indicators and multiple causes (MIMIC) and mediation analysis. Our results point out that the Covid-19 pandemic exposed Egyptian SMAEs to complex and multidimensional risks, and caused profound effects on both upstream and downstream stages of their supply chains. In general, Egyptian SMAEs adopted a ‘wait-and-see’ approach to cope with such Covid-19 risks and impacts, which was attributed to their lack of sufficient financial resources to develop risk management strategies and formalize structures to deal with unexpected events. Interestingly, the results showed that several business opportunities emerged from pandemic; but SMAEs' resource disadvantages constrained their capacity to seize and exploit these opportunities. Moreover, we found that mitigation strategies adopted by SMAEs present a mediating factor between perceived Covid-19 risks and perceived business opportunities. Overall, our findings call for a paradigm shift in relation to enterprise risk management in developing countries' SMAEs toward more holistic frameworks to enhance their preparedness to future shocks, make mature operational and strategic management decisions, and exploit strategic opportunities.

TRIAD method to assess ecological risks of contaminated soils in abandoned mine sites

Site-specific soil ecological risk assessment is important for protecting soil ecosystems because it reflects the environmental factors at the site to detect ecological risks and develop risk management measures. This study assessed the ecological risks from chemical pollutants in abandoned mine sites using the TRIAD approach, evaluating its overall applicability, including the tiered system of assessment. A site-specific soil ecological risk assessment was conducted for five abandoned mine sites (Sites 1–4 and R, the reference site); integrated risks (IRs) for each site were calculated. Our results of the Tier 2 assessment showed that IRs at Sites 1–4 were 0.701, 0.758, 0.840, and 0.429, respectively. The IR classification was moderate, high, high, and low risk, in that order for Sites 1–4, the same as that for Tier 1. The IR had more varied analyses, emphasizing the significance of conducting higher tiered analyses under TRIAD while maintaining a balance between soil ecosystem protection and socioeconomic costs. Multiple analyses reduced the uncertainty of IR, thus enabling efficient risk management decision-making to protect soil ecosystems. Our study provides a basis for using the TRIAD for soil assessment and establishing policies for site-specific soil ecological risk assessments.

Overtourism risk management for sustainable destination development

Aim. To propose measures to combat overtourism and its negative consequences at the global level and at the level of Sochi Destination.Tasks. To study the processes and risks associated with overtourism; to use the term “overtourism” to describe the negative consequences of mass tourism, which, as a rule, are associated with the explosive growth of popularity of certain places in the world, attracting more and more attention from both ordinary tourists and social network users; to conduct the practical part of the study on the example of the resort city of Sochi.Methods. In this article the international and domestic experience of levelling the risks of overtourism is investigated with the help of analysis, system approach and statistical methods. Measures to combat overtourism and its negative consequences both at the global level and at the level of Sochi destination are proposed.Results. With the overall positive situation in the Sochi destination with signs of overtourism, the formation of its initial manifestations can be traced, which requires the development of preventive measures. In this case it is recommended to take into account the information of the Association of restaurateurs and hoteliers HOTREC, proposed to solve the problems of overtourism in European countries.Conclusions. In the case of signs of overtourism detected by different assessment methods, regional tourism administrations should be advised to develop appropriate prevention strategies. It can be assumed that such strategies should be formed depending on the stages of the life cycle of the destination.

Integrating flood risk assessment and management based on HV-SS model: A case study of the Pearl River Delta, China

Global climate change has resulted in frequent extreme weather events in recent decades. The Pearl River Delta, one of the most developed regions in China, frequently faces the threat of flood disasters, causing significant human and economic losses. However, previous flood risk studies ignored the energy flow, material transfer and information transfer in the region, resulting in a disconnect between risk assessment results and management strategies, making it difficult to achieve the desired disaster prevention and mitigation effects. Thus, the HV-SS model was proposed with the aim of integrating flood assessment and management, thereby achieving more accurate and efficient risk management. The results showed that the majority of the study areas were under medium to high flood hazard levels, and their spatial distribution was closely related to natural conditions. The proportion of risk area was inversely proportional to the risk level, and the spatial distribution of flood risk exhibited a central-high and perimeter-low characteristic, with medium-risk surrounding the high-risk areas. Comparative verification, combined with the TOPSIS method achieved a matching rate of 89.89%, indicating that the assessment result was reasonable. The flood risk pattern constructed using the source-sink theory found that the primary risk sources were located in the central region and continuously transferred risk to surrounding areas through risk corridors. It is crucial to note that easily ignored risks were hidden around the risk nodes, and some reasonable flood management strategies were proposed. This study can provide a reference for regional flood risk assessment and management for sustainable development.

Economic strategic plans with supply chain risk management (SCRM) for organizational growth and development

One of the most fascinating and important research areas in recent years is supply chain risk management (SCRM), which helps to boost customer support, high-profit revenues, and organizational growth. The main goal of this effort is to carry out a thorough case study on the top 5 businesses that use the SCRM model globally. The following reasons are why organizations use the SCRM model: risk identification and assessment, risk analysis, environmental monitoring, and risk management. The organization's SCRM is more complicated and constantly changing, and numerous teams, including those for quality, resilience, security (both cyber and physical), compliance, and sustainability, support its implementation. Additionally, a system based on Artificial Intelligence (AI) and Adaptive Logistic Regression Classifier (ALRC) is employed to determine the right choices for risk identification. They calculated the supply base throughout the risk assessment process using the intrinsic risk factors of the production, social, and environmental processes. Here, the effectiveness of organizations is evaluated in light of their success rate, resilience, and value to their customers.

Spatiotemporal evolutionary patterns and driving factors of vulnerability to natural disasters in China from 2000 to 2020

Vulnerability is one of the most important drivers of risk, and efforts in reducing vulnerability have been shown to be an essential strategy for disaster risk reduction (DRR). However, for those developing countries experiencing rapid urbanization, like China, poor understanding of the dynamics of vulnerability has hindered the achievement of DRR goals as set out in the Sendai Framework. Therefore, this study aims to investigate the spatiotemporal evolution of human and economic vulnerability for China from 2000 to 2020, and further explore the impacts of socio-economic development and disaster risk management on vulnerability. The results show an overall declining trend for disaster-related fatalities, but an increasing trend for direct economic losses. Significant regional and provincial disparities of vulnerability are observed: both human and economic vulnerability are highest in western China, modest in central China, and lowest in eastern China. Both human and economic vulnerability to natural disasters is steadily declining for the period 2000 to 2020. Social development and hazard risk management level are found to have significantly negative effects on human and economic vulnerability, while significant effect of economic growth is not detected in our analysis. Urbanization rate and education level are the most important factors in shaping both human and economic vulnerability. Expenditures of DRR, an indicators of risk management, is also found to be a significant determinator of vulnerability. Our findings are useful in informing effective national and regional DRR policy, and can also be generalized to other developing counties with situations similar to those of China.With respect to economic vulnerability—represented by direct economic losses per trillion GDP—the average value for China in last 21 years is 7.17 billion RMB. In terms of overall trends, the 5-year moving average of economic vulnerability decreased from 12.2 billion RMB to 4.2 billion RMB in the period 2000 to 2020, a decrease of 65.6%. Although significant declining trends are also observed for Western, Central and Eastern China, the levels of economic vulnerability in the three regions are quite different. Average economic vulnerabilities for Western, Central and Eastern China over the past two decades are 17.2, 9.1 and 3.4 billion RMB, respectively, which demonstrates that Western China is the most prone to economic damages, while Eastern China is least likely to be economically disrupted. This regional disparity is also consistent with the regional distributions of annual reported direct economic losses from 2000 to 2020. Regarding the overall trends of economic vulnerability for the three regions, the 5-year moving average of economic vulnerability for Western China decreased from 16.0 to 6.3 billion RMB, a decrease of 60.6%; that of Central China, from 22.8 to 7.2 billion RMB, a decline of 68.4%; and that of the Eastern China, from 6.1 to 2.1 billion RMB, a decline of 65.6%.

Formation of a System for Monitoring Risks in the Implementation of Life Cycle Contracts

Objective: In light of the current economic volatility and the need for sustainable development, the objective of this study is to develop risk management tools for construction companies involved in investment and construction projects, particularly those implemented through public-private partnerships. Methods: The study examines the activities of construction companies in implementing risk management procedures for life-cycle contracts. It emphasizes the establishment of key risk indicators (KRI) and the development and implementation of measures to mitigate risks associated with life-cycle contracts, taking into account regulatory requirements and sustainable development principles. Results: The study identifies the main risks faced by construction companies in the implementation of life-cycle contracts and provides lists of KRI grouped according to these risks. The proposed risk monitoring system enables effective risk management, ensuring compliance with regulations and promoting sustainable development practices. Conclusion: The findings reveal the main activities of construction companies in the organization of risk management procedures for life-cycle contracts, including the establishment of key risk indicators, and the development and implementation of measures to mitigate the risks of life-cycle contracts.

Achieving risk resilience in an environment of mistrust: supply chain piracy of physical goods

PurposeThis paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective in environments characterized by weak regulative institutions and mistrust.Design/methodology/approachThis study developed case studies of nine large manufacturers with operations in Brazil.FindingsThe companies employed transactional and relational governance mechanisms to learn from past incidents, anticipate, and respond to the threat of SC piracy, becoming more resilient over time. Transactional governance mechanisms reduced risk triggers through technology, while relational governance mechanisms enhanced trust between SC and non-SC members, allowing the members to build social capital.Practical implicationsThe authors provide practical guidance for managers and policymakers in developing risk management strategies based on technology and collaboration to reduce SC piracy in environments characterized by mistrust.Social implicationsSC piracy is a serious problem for global operations and SCs in many low-cost manufacturing locations. Besides the cost and service level consequences, the authors also highlight worker safety consequences, including the potential for kidnapping, psychological trauma, injuries, and death.Originality/valueThis study focuses on the little-researched topic of SC piracy. The authors examine the negative effects of a weak institutional environment, while most prior research focuses on the positive effects of a strong institutional environment. The authors position transactional and relational governance mechanisms as essential elements of SC risk resilience.